Legal setback affects Lockheed shares

Lockheed Martin shares retreated last week after a legal setback on the company's retirement plan.

The defense giant closed at $122.20 on Friday, down 1.3 percent for the week.

A panel of U.S. 7th Circuit Court judges recently gave 56,000 investors in Lockheed's 401(k) plan hope that they won't have to sue individually over allegations that the company's retirement plan was badly run.

The suit charges Lockheed's "stable value fund" shortchanged them on returns by holding money market investments rather than a better mix and that the fund not keep pace with inflation.

Revenue, however, dropped 4 percent to $11.4 billion. Lockheed's stock price has increased by more than 30 percent since the beginning of the year.

The company, which is based in Bethesda, Md., employs about 425 people in Archbald who produce laser-directed steering equipment for bombs and training munitions, and specialized instrumentation systems.

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